Midwestern Trucking & Freight Brokerage, US Transportation Operator

$9.0M

Revenue

$1.6M

SDE

5.5x

Multiple

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Full Editorial Writeup

The full editorial writeup for this deal will appear here once enriched.

Earnings quality looks solid on the surface: $1.65M of cash flow on $9M revenue is an 18% margin, well above the razor-thin margins typical of pure asset-based trucking. The brokerage component likely drives that, since brokered loads earn a spread without the capital intensity of owning and maintaining tractors.
Freight is durable demand. Goods have to move in expansions and recessions alike, and a diversified Midwest lane network serving manufacturing, ag, and distribution customers is exactly the kind of essential, boring cash flow that keeps paying through cycles.
The hybrid model is a real moat versus single-mode competitors. Owning both capacity and a brokerage means the business can flex between hauling its own freight and brokering out overflow, capturing margin on both sides and protecting revenue when equipment sits idle.
It is described as growing rather than flat or declining, which implies the seller has been winning shippers and expanding lanes. A buyer inherits momentum plus the option to bolt on carriers or acquire smaller regional brokerages into the same back office.

Push freight mix toward the brokerage side. Brokered loads carry no equipment maintenance, fuel, or driver liability, so growing the asset-light book faster than the trucking fleet improves margins and reduces capital intensity within the first year.
Tighten carrier and lane profitability tracking. Install load-level margin reporting so you can kill unprofitable lanes and double down on the highest-spread shipper relationships, a change that is executable in 90 days with existing TMS data.
Recruit and retain drivers systematically if the trucking side depends on owner-operators or company drivers. Driver turnover is the silent margin killer in trucking, so a referral program and pay benchmarking can protect the asset-based revenue.
Diversify the shipper base to reduce concentration risk. If a handful of customers drive most volume, invest in a dedicated sales function to add contracted freight and reduce dependence on any single account.
Add fuel surcharge and rate escalators to contracts where absent. Locking in pass-throughs on fuel and annual rate bumps protects margin when diesel spikes or freight rates soften.
Consolidate back-office and dispatch technology. A modern TMS with automated load matching and billing reduces headcount cost per load and creates the operational leverage needed to bolt on acquisitions.

Resolve the location discrepancy immediately. The listing shows Dubai while the name says Midwestern, so confirm where the business actually operates, where the entity is domiciled, and whether US operations and tax filings are genuine before anything else.
Break the $1.65M cash flow into asset-based versus brokerage earnings. The two have very different risk and margin profiles, and you need to know how much profit comes from owned equipment versus the brokerage spread to value each stream correctly.
Scrutinize the equipment situation. Determine whether tractors and trailers are owned, leased, or run through owner-operators, what the deferred maintenance and capex needs are, and whether any fleet is included in or excluded from the price.
Test customer and carrier concentration. Pull revenue by shipper and by carrier for at least three years to see if the business is dependent on a few accounts or a few contracted lanes that could walk after closing.
Verify the freight-rate cycle exposure. Trucking earnings can be inflated by a peak-rate environment, so normalize the last three years against freight market indices to confirm the $1.65M is sustainable and not a one-time spot-rate windfall.
Confirm driver, licensing, and regulatory standing. Review DOT/FMCSA safety ratings, insurance loss history, driver classification (employee vs contractor), and any pending claims that could impair value or insurability post-close.

Originally listed on Synergy Business Brokers. View original listing →

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